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PRESENTATION TO THE SELECT COMMITTEE ON LOCAL GOVERNMENT AND ADMINISTRATION Mr Mbulelo Sigaba

PRESENTATION TO THE SELECT COMMITTEE ON LOCAL GOVERNMENT AND ADMINISTRATION Mr Mbulelo Sigaba Acting Chief Financial Officer 07 May 2007. dplg 07 May 2007 2. PURPOSE. To highlight the budget allocation for the department.

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PRESENTATION TO THE SELECT COMMITTEE ON LOCAL GOVERNMENT AND ADMINISTRATION Mr Mbulelo Sigaba

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  1. PRESENTATION TO THE SELECT COMMITTEE ON LOCAL GOVERNMENT AND ADMINISTRATION Mr Mbulelo Sigaba Acting Chief Financial Officer 07 May 2007

  2. dplg 07 May 2007 2 PURPOSE • To highlight the budget allocation for the department. • To inform the portfolio committee on how the policy priorities are funded.

  3. dplg 07 May 2007 3 BACKGROUND • The department continues to explore efficient options for financing local government. The ultimate goal is to ensure that each municipality has a sufficient base to execute its constitutional mandate. The Local Government Equitable Share (LGES) was reviewed in 2004 with the revised formula fully implemented in 2007/08. • The current focus of the review is to assess the impact and implementation of the new property rates legislation, the alignment between the functional and fiscal division of powers and functions between Category B (local) and Category C (district) municipalities and restructuring of the electricity distribution industry.

  4. dplg 07 May 2007 4 EXPENDITURE PER PROGRAMME

  5. dplg 07 May 2007 5 KEY SPENDING AREAS • Strong emphasis is placed on strengthening local government’s ability to deliver basic services over the medium term and on the expansion and upgrading of key infrastructure. • Investment in stadiums, public transport and communication systems to ensure a successful 2010 FIFA World Cup. • Stepping up investment in the built environment in the form of housing, electricity, water, sanitation and community facilities. • Contributing to improved economic efficiency through investment in roads and skills development.

  6. dplg 07 May 2007 6 LOCAL GOVERNMENT PRIORITIES • Local government equitable share grows by 11% in real terms • Increased funding for free basic services to poor households • Improving governance and administrative systems • R45,7bn Capital transfers to municipalities include: • R24,7bn for infrastructure to roll out basic municipal services • R7.8bn for construction and upgrading of 10 stadiums for 2010. • R6.7bn to host cities for infrastructure around the stadiums & for public transport and systems improvement. • R1,4bn to ease pressure on bulk systems for water supply and sanitation • R1,4bn to roll out electricity infrastructure in municipalities • R3,7bn for neighbourhood development partnership grant to fund improvements to settlements • Capacity-building and restructuring in municipalities is prioritised • Focus on planning, budgeting, financial management and technical skills R807.7m • Siyenza Manje programme led by DBSA R741.3m

  7. dplg 07 May 2007 7 ECONOMIC CLASSIFICATION

  8. dplg 07 May 2007 8 LOCAL GOVERNMENT TRANSFERS

  9. dplg 07 May 2007 9 PURPOSE OF THE GRANTS • LGES is meant to boost the ability of municipalities to fund the provision of free basic services to poor households and to improve governance and administrative systems • MIG is a conditional grant meant to augment municipal own resources and places municipalities in a better position to provide infrastructure for rolling out basic services , alleviating poverty, address backlogs and regional disparities in municipal infrastructure. The grant also seeks to stimulate local economic development and job creation through labour-based infrastructure methods as prescribed by the expanded public works programme. • MSIG is meant to focus on stabilising municipal and governance systems, planning and implementation management support centres, reviewing intergrated development plans and implementing the Municipal Systems Act.

  10. dplg 07 May 2007 10 FISCAL TRANSFERS * Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities ** Commission on Traditional Leadership Disputes and Claims

  11. dplg 07 May 2007 11 2006/07 AND 2007/08 EQUITABLE SHARE

  12. dplg 07 May 2007 12 2006/07 AND 2007/08 EQUITABLE SHARE (RSC Portion)

  13. dplg 07 May 2007 13 2007/08 MIG ALLOCATIONS

  14. dplg 07 May 2007 14 MUNICIPAL INFRASTRUCTURE GRANT: PER PROVINCE

  15. dplg 07 May 2007 15 BENEFICIARIES OF MIG

  16. dplg 07 May 2007 16 Thank You!! Enkosi!!

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